Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

While Ireland continues to spend more than it takes in, the task ahead for the Government is very difficult as we seek, through a combination of increased taxation and cuts in expenditure, to balance the nation's budget. This is a necessity to get the country back on track. Considerable progress has been achieved to date in steadying the ship of State. There are indications of modest growth in GDP of 0.7% and given the significant deterioration in the economies of many of our trading partners, this success has been achieved in the face of strong headwinds. In 2010 the State deficit amounted to 10.6% of GDP. The aim is to bring this figure down to 8.6% this year, with the overall aim of bringing it below 3% by 2015.

We are all too well aware of the role played by the banking collapse in the economic course of recent Irish history. It was some time before the full brunt of the imploding property market was fully felt in banking circles. That implosion has resulted in bank recapitalisation which to date has cost the State €64 billion. The difficulty experienced in the banking system was not, however, solely an Irish phenomenon. There is now a European-wide realisation that a way has to be found to break the link between sovereign nations and the banks. It is imperative that such assistance is made available to every country experiencing difficulties.

The people have worked hard to uphold our side of the bailout bargain. There have been real and measurable achievements. I compliment the Taoiseach on his efforts over the weekend to ensure the Irish efforts would be recognised at European level and that we would achieve our just rewards with a breaking of the link between sovereign and banking debts. There has been much speculation surrounding this topic. Given the difficulties being experienced throughout the country, it is becoming increasingly imperative that the negotiations at European level and the many high level meetings are translated into a measurable and advantageous deal which would greatly help the economic sustainability of the country. It would provide hope the problem could in time be overcome.

The country is facing one of its toughest budgets. There has been much talk of low-hanging fruit, but that is just a distant memory. Each and every expenditure cut will have to be made and will be felt throughout the country. I fully respect the fact that the Minister for Finance, Deputy Michael Noonan, and his officials are tasked with making these very difficult decisions. However, it is imperative that this be done in the fairest way possible. When it comes to increasing the tax take, those who can afford to pay more will have to pay more. Even in these desperate economic times, we have choices. I suggest two groups, in particular, need to be shielded from the harsh cuts. These are people with intellectual disabilities and those with severe physical disabilities, particularly those in receipt of a home help service. Cuts to the budgets of various organisations dealing with people with intellectual disabilities have been steady and deep in recent years. This year there was an impasse when parents of school-leavers with intellectual disabilities were left in limbo as to what would happen to the children in September and whether sufficient places would be funded. Further cuts will directly impact on the ability of these groups to deal with school-leavers next year. Over time this could result in a complete erosion of essential services for people with intellectual disabilities.

Consistent cuts in funding for the home help scheme have left these workers in a terrible position. As the end of the year looms, the pressure on those working in the service is increasing, as there is an attempt to stay within budget. However, sickness and ill health are no respecter of calendar years and people with palliative care needs are as likely to be discharged in November as in January. These are but two areas which must be shielded from cuts at all costs in what will be the harshest budget the country has ever experienced, given that it will follow steady and deep cuts in recent years. The rationale behind the protection of these two areas is self-evident. Families of elderly persons and people with intellectual disabilities worry about the future of their loved ones as the budget looms. Those working with people with intellectual or physical disabilities must also be remembered, as the cuts to date have already made their working lives infinitely more difficult as they seek to work from day to day with ever dwindling resources.

The country has shown that it is willing to work through its issues and problems. We need to get a deal from the European Union. The Taoiseach has said it is not the speed of a deal that matters but rather its quality. We passed the fiscal compact treaty and have shown that we are willing to work within the programme. It is time we were given a deal on the bank debt, one that would give the people the confidence to look forward in order to get back on track.

We should acknowledge the sectors of the economy which are doing well. I know unemployment levels are high, but the agriculture sector is doing very well and has the potential to create more jobs. I expect the budget to be pro-jobs. We will get out of this mess. We will have to face one or two tough years, but we need to be positive because the people outside this House expect that from us. We will deal with the harsh decisions and must lead from the front. The European Union has an important role to play in this regard.

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